For many small businesses traditional financing isn’t accessible. SBDC Director Kelly Bearden walks through six alternative funding options that can open doors and give you a clearer path to the capital your business needs.
This marks the 378th episode of the “Webinar Wednesday” that provides news and information helpful to employers and business owners.
Businesses can go to https://csubsbdc.com/ for more information or to sign up to meet with a business advisor at no cost.
TIMESTAMPS
00:00 Intro
00:21 What’s Up Today – April 29, 2026
03:40 Poll #1: “What is your biggest barrier to funding?”
05:41 Poll #2: “In the past, how have you funded your business?”
08:19 Economic Corner: Consumer Spending & Credit Bubble Warning
11:31 Crowdfunding as an Alternative Funding Source
–Live look-in with SBDC Eastern Sierra Business Consultant Jim Thomsen
–Campaign launched 4/28/2026; 45% of $15,000 goal by Day 2
Yosemite Film Festival and Storyteller Summit by Yosemite Climbing Association — Kickstarter
Yosemite Film Festival Project Link
13:01 Key success factors:
•Planning different pledge tiers and rewards.
•Extensive pre-work in building mailing lists and pre-launch promotion.
•Ability to fulfill promised rewards (e.g., shipping T-shirts).
•Critical role of video: 80% of successful Kickstarter campaigns have videos; authenticity is more important than professional production.
15:50 Kickstarter mechanics:
•A set goal must be reached to receive any funding.
•Successful campaigns typically raise about one-third of their money in the first 48 hours.
•The current campaign is in day two, has 44 backers, and is over 30% of its goal.
•Social media push with planned posts, minimal advertising spend (less than $300).
19:05 AI assistance:
-AI tools were used for research, analyzing past film festival campaigns on Kickstarter to identify successful strategies, reward types, and optimal pledge amounts.
20:25 Financials:
-A $125 pledge costs about $30 to fulfill (including T-shirt and hat), yielding a 65-70% margin. The organization expects to clear over $12,500 from a $15,000 goal, with potential stretch goals up to $25,000.
23:49 AI & Crowdfunding: Fundraising Made Easier
–CSUB SBDC AI student teams + AI research tools
–AI analyzed every film festival Kickstarter ever run
–Finding sweet spot pledge amounts & top reward types
–Crowdfunding forces thorough business planning and serves as inexpensive market research, validating customer interest.
24:51 Capital Corridor: Why Alternative Funding Matters
32:18 Non-Bank Qualified Funding Options Overview
–Credit card financing (good credit, 8–10%)
–Invoice & accounts receivable financing (B2B & government)
–CDFIs: Community Development Financial Institutions
–Collateral-based loans: equity lines, hard money
–401k/IRA retirement fund strategies (avoid early tax penalties)
–Equipment leasing
–State financial development corporations
41:18 Kelly’s Top 6 Alternative Funding Picks
45:03 Bootstrapping: Creating and preserving capital by living frugally and delaying investments that dilute ownership.
47:12 Accounts Receivable financing: Effective for B2B and B2G sales, used as a tool for high growth to secure traditional credit lines.
48:04 Lower cost credit cards: Can provide cheap capital (e.g., 10.99% APR) and function as a line of credit if managed properly.
49:10 Strategic partnering and joint ventures: Mutually beneficial agreements that can bring in customers and potentially lead to funding options.
50:13 CDBG over-the-counter funds: Community Development Block Grant federal funds for California, requiring time and job creation for low-to-moderate income individuals. Can fund larger projects (e.g., a $3 million lodging property).
51:57 CDFIs & other bank lender options: – Kern County CDFIs: Valley Strong Credit Union https://www.valleystrong.com/ & Alta 1 Credit Union https://altaone.org/
-USDA rural programs: Support rural communities (under 50,000 people) for agriculture, agribusiness, and general community development (e.g., shopping centers). https://www.rd.usda.gov/programs-services/business-programs
-State financial development corporations: Require bank involvement but have lesser qualifications.
-Hard money loans: Viable for real estate purchases with large down payments.
-Unique and mini-bank programs.
54:05 Additional Funding Advice
-Multiple sources:
Do not be afraid to combine multiple funding sources with different interest rates and terms; the weighted average cost of capital can be calculated.
-APR: Always know the Annual Percentage Rate for any funding option.
-Industry-specific lenders: Explore lenders specializing in particular industries (e.g., trucking).